Lease Purchase

Suitability explanation

Lease Purchase (LP) is very similar to Hire Purchase, but with the addition of a balloon payment. This means that a proportion of a business car’s initial cost is deferred until the last month of the contract, therefore lowering the monthly amount that has to be paid after you place the initial down-payment. The monthly payments are dependent on the difference between the price paid and residual value of the vehicle plus interest. This means that the deal gets better the more the car holds its value, making luxury cars more popular for long term deals. Lease Purchase suits businesses that want to retain their company car as an asset.

LP may not be suitable for you in certain circumstances. For example:

There is no option to return the vehicle, however, by entering into a Lease Purchase deal, you have already agreed to buy the car.

Benefits of LP

Vehicle is registered in the company name

On balance sheet

Fixed monthly payments not subject to VAT

No mileage restriction

Portion of initial cost deferred until last month of the contract

Taking care of the vehicle

You must ensure the vehicle is comprehensively insured at all times

You must pay any additional charges that you incur eg parking fine, congestion charge on time. If you don’t do this, the charge will be referred to the finance company who take payment from you for this and for an administration charge that they will make

It is a condition of the manufacturer’s warranty that the vehicle is serviced and maintained in accordance with the manufacturer’s requirements. They recommended that you use the services of a main franchised dealer

Failure to make payments in full and on time may result in the contract being terminated and the vehicle repossessed. Only enter in to an agreement if you are comfortable with the financial commitment and terms.

Committed to Quality

Total Fleet is committed to demonstrating expertise and quality to all our customers. If you would like to discuss any aspect of the service we provide, please don't hesitate to get in touch.

Address

Total Fleet is a trading name of Hanborough Enterprises Ltd and is regulated by the Financial Conduct Authority for consumer credit activities (Firm Reference Number 631448). You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. Hanborough Enterprises Ltd T/a Total Fleet is a Credit Broker not a Lender. Hanborough Enterprises Ltd T/a Total Fleet work with a panel of lenders and we may receive a payment or benefit from the finance provider if you enter into an agreement with them.